Comment by disgruntledphd2
15 hours ago
> Can you give me a set of non-EU countries with better cross-country capital markets, that are as such now instead the place to build this? Especially for a set size bigger than 3? Serious question, as I've never heard of one and am fairly sure it doesn't exist, though I'd love to be proven wrong.
This does not exist, however the EU single market is also pretty unique in terms of how many countries are involved. If you include the EEA and the customs union, it's definitely the largest.
Given that there's an obvious currency union, the capital markets thing is relatively plausible (difficult but not impossible), and I personally think it would be great.
Note that I am biased, as I live in a small EU country and our financial and insurance providers are both expensive and terrible. And obviously the EU tech industry would benefit, which would also help me.
I think the real reason this hasn't happened is hangover from the EZ crisis, as sharing risk for banks across nations was toxic in many countries as a result of the financial and EZ crises. But now seems like a good time to at least start it.
As I said above, the biggest problem here would be where to put it, and the UK's absence from the EU makes the obvious place politically a non-runner (unfortunately).
If it does not exist, it is not a disadvantage compared to anywhere else. In a sense it's an advantage, as despite the barriers, the capital markets of two EU countries (especially if they use the Euro) are still a lot more integrated than if you'd pick two random non-EU countries. The disadvantages of being from a small EU country would apply the exact same way but even worse if you were from a small non-EU country.
Digital regulation is not a serious blocker, as any EU founder can tell you. Per above, neither are cross-country capital markets a disadvantage of the EU compared to the non-EU world. Then what is the disadvantage? Do Japanese startups have it any better? Korean? Kenyan? Serbian? Mexican? Taiwanese? Malaysian? Singaporean? Do those startups benefit from "less regulations" or from cross-country capital markets? Of course they don't, yet I've never seen a single person in my life mention those countries' regulations or lack of cross-country capital markets. Because they don't have an advantage in those areas, showing that the EU indeed doesn't actually cause any disadvantages in them.